Sluggish iPhone sales in China caused the company to slash its revenue forecast by billions of dollars.
But there was a silver lining to the bad news.
Apple expects to end the quarter with $130 billion in net cash. That equates to over $27 in cash per share or nearly 19% of the company’s market capitalization.
In a letter to shareholders, Apple CEO Tim Cook said that the company plans to “become net-cash neutral.”
What does that mean? Well, it means you should expect record share repurchases and dividends.
Share repurchases – especially at these low levels – are likely a great use of excess cash.
Apple currently sports a 1.9% dividend yield. The company has consistently increased its dividend in recent years. And this week’s announcement suggests additional increases in the coming year.
Even with bigger dividends, Apple isn’t exactly a cash machine.
Let’s say you wanted to collect $2,000 in annual income from this stock. Well, you’d have to own 685 shares of common stock. And at a recent bid of $148, that’d cost you a cool $101,370.
Now, I know most folks reading this letter aren’t investing 100 grand in a single stock.
Here’s the good news.
One tiny company from New York delivering $2,307 in one-time income payments. Of course, you could collect much, much more.
Unless you’re a millionaire, this payment is far more than you’ll ever earn from Apple.
Go here for urgent details – before the income payments expire.
Yours in Profits,